Bitcoin Price Remains Near Lower End of Trading Range Amid Global Uncertainty

Global Markets Tumble Amid Uncertainty Over Conflict in the Middle East

Bitcoin traded near the lower bound of its more-than-a-month-long trading range on Thursday, weighed down by continued uncertainty about the fallout from the conflict in the Middle East. Cryptocurrencies across the board were lower, with Bitcoin, the largest by market value, dropping as much as 3.6% to $65,709 before paring the decline during New York trading. Ether fell by as much as 5.9%, and Solana dropped by a similar magnitude.

The conflict in the Middle East has sent shockwaves through global markets, with US President Donald Trump's pledge to continue the war on Iran rattling energy markets. The Strait of Hormuz, a critical oil shipping route, remains closed, and oil prices are expected to stay higher for longer. US benchmark WTI crude oil surged to more than $111 a barrel on Thursday.

The uncertainty has led to a sharp selloff in stocks and bonds, with investors pulling $174 million from US-listed spot Bitcoin exchange-traded funds on Wednesday. Despite a stabilization in net inflows into the ETFs in March, with about $1.1 billion in net inflows, those allocations have proven sensitive to macro shifts.

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

Bitcoin's price is consolidating at a range between $66,000 and $69,000, according to FxPro's chief market analyst. The token has been weathering the war better than many assets, ending March up 2% from the previous month and snapping a five-month losing streak. However, demand for Bitcoin has remained weak, with the token down 45% from a peak of $126,000 that it hit in October.

Apparent demand, which measures the extent to which demand compares with new Bitcoin being mined, was negative by about 63,000 tokens as of late last month, according to a report from CryptoQuant. A lack of conviction among large Bitcoin holders, known as whales, has been one challenge, with those holders turning into net sellers over the past year.

Note: The price changes for Ether and Solana are not provided in the original article. However, it is mentioned that they fell by as much as 5.9% and by a similar magnitude to Bitcoin, respectively.

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000